Strategy of Strengthening Food and Beverage Industry in Indonesia

The food and beverage industry has an important role to play in the Indonesian economy. This industry's contribution to the GDP of the non-oil and gas industry reaches almost 34 percent and absorbs a lot of labor. The purpose of this paper is to analyze the strategy of strengthening the food and beverage industry which can improve the performance and competitiveness of Indonesia's food and beverage industry sector. The approach used is a descriptive approach. The results of the analysis show that for some food commodities have a low competitiveness, while the beverage industry which is dominated by soft drinks and alcoholic beverages, Spirits drinks and Beer has an increasing trend. To improve the competitiveness and performance of Indonesian food and beverage products, the government has carried out several policies, but not yet optimal. The strengthening effort that must be made by the Government is to increase exports to non-optimal markets (Untapped Market Countries). In addition, for the development of small and medium industries, the industrial sector also needs fiscal incentives as well as increased industrial technology capabilities.